Canadian economists are pushing back forecasts for the Bank of Canada’s first rate cut

By Pamela Heaven
Financial Post
February 12, 2024
Category: Finance & Economics
Region: Canada

The latest numbers on Canada’s job market have moved the needle on when some economists think the Bank of Canada will make its first interest rate cut. Labour numbers released Friday by Statistics Canada were unexpectedly strong, with a gain of 37,000 jobs that more than doubled forecasts. That prompted some economists who predicted the first Bank of Canada cut in April to push back their forecasts until June. “Although the sharp rise in employment in January may paint a healthier picture of the labour market than what is under the surface, the Bank of Canada will still be concerned about the renewed decline in the unemployment rate and the strength of wage growth,” said Olivia Cross, an economist with Capital Economics. Capital economists and Desjardins Securities’ Royce Mendes both pushed back their forecasts for the first cut from April to June.

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